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( )
( )
Raw materials: 2007 2006
46,000.00
42,000.00
Opening Stock
Purchases 4,74,000.00 4,30,000.00
5,20,000.00 4,72,000.00
Less: Closing Stock 52,000.00 46,000.00
Financial Accounting Add: Material Consumed 4,68,000.00 4,26,000.00
Direct Labour 6,32,000.00 5,06,000.00
Manufacturing Expenses 2,84,000.00 2,42,000.00
13,84,000.00 11,74,000.00
Notes
Valuation of Goods in Process of Stock:
Opening of year 28,000.00 26,000.00
Closing of year 32,000.00 28,000.00
Increase 4,000.00 2,000.00
Cost of Goods Manufactured 13,80,000.00 11,72,000.00
Solution:
Raj Company Limited
Comparative Statement of Cost of Goods Manufactured
Amount % of cost of Increase (+)
Goods Manf. Decrease (-)
Particulars
2007 2006 2007 2006 Absolute Relative in
in 000 in 000 in 000 %
Raw Materials Used 468 426 33.91 36.35 +42 +9.86
Direct Labour 632 506 45.80 43.17 +126 +24.90
Manufacturing Expenses 284 242 20.58 20.65 +42 +17.36
Total 1,384 1,174 100.29 100.17 +210 +17.89
Less Increase in
Work-in-Progress 4 2 0.29 0.17 +2
Cost of Goods
Manufactured 1,380 1,172 100.00 100.00 +208 +17.75
Task Calculate the cost of materials consumed from the following:
( )
Opening stock 11,500
Purchases 1,05,000
Wages 3,500
Sales 1,40,000
Hint: 20,000
4. Comparative Statement of Working Capital: When two periods’ statement of working
capital are compared, comparative statement of working capital is prepared. This statement
depicts the absolute changes in the each element of working capital and the changes in
total working capital also. The example of the comparative statement of working capital
is given below:
Illustration 3: From the following balance sheets, prepare a schedule of changes in working
capital.
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